EUROPEANCOMMISSIONBrussels,XXX[..](2025)XXX draftANNEXANNEXto theCommission Implementing Regulationlaying down rules for the application of Regulation(EU)2023/956 of the EuropeanParliament and of the Council as regards the calculation of the free allocationadjustment to the number of CBAM certificates to be surrenderedENENANNEX1.DEFINITIONSFor the purpose of this Annex,the following definitions shall apply:(1)'aggregated goods categories'means aggregated goods categories pursuant toTable 1 of point 2 of Annex I to Commission Implementing Regulation (EU)XX/XX [on the calculation of embedded emissions];(2)reporting period'means the period corresponding to the calendar year duringwhich the good was produced and to be used by the authorised CBAM declarantas reference for the determination of embedded emissions;(3)production route'means a specific technology used in a production process toproduce goods;2.CALCULATION OF THE FREE ALLOCATION ADJUSTMENTFor each good g other than electricity listed in the CBAM declaration pursuant to Article 6 ofRegulation (EU)2023/956,the free allocation adjustment pursuant to Article 31 of thatRegulation shall be calculated using the following equation:FAAg=SEFAg,.y·MgEquation (1)Where:FAAgis the free allocation adjustment of good g.SEF Agyis the specific embedded free allocation of good g in year y expressed ast COze/tonne of good g.is the mass of good g imported during the year to which the CBAMdeclaration applies.is the reporting period identified in accordance with Article 7 ofImplementing Regulation (EU)XX/XX [on the calculation of embeddedemissions].3.CALCULATION OF SPECIFIC EMBEDDED FREE ALLOCATION (SEFA)OF A GOODUSING ACTUAL DATA3.1.Production processFor a single production process,the process-level specific free allocation shall be calculatedusing the following equation:EN1EN